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HomeMy WebLinkAbout8. Affordable Housing Plan Otay Ranch Planning Area 12 Freeway Commercial North Affordable Housing Program This page is intentionally blank. i TABLE OF CONTENTS I. INTRODUCTION .................................................................................................................................................................... 5 A. Purpose and Content ............................................................................................................................................... 5 B. Needs Assessment ................................................................................................................................................... 5 II. FC-2 AFFORDABLE HOUSING OBLIGATION, LOCATION, PHASING, DESIGN AND UNIT MIX ............................................................... 9 A. Obligation ................................................................................................................................................................ 9 B. Types of Affordable Housing .................................................................................................................................... 9 C. Location .................................................................................................................................................................... 9 D. Phasing 10 E. Design 10 F. Unit Mix by Bedroom Count ................................................................................................................................... 11 III. AFFORDABLE HOUSING RESTRICTIONS .................................................................................................................................. 12 A. Income Eligibility .................................................................................................................................................... 12 B. Affordable Monthly Rents ...................................................................................................................................... 12 C. Affordable Housing Costs for Owner Occupied Housing .......................................... Error! Bookmark not defined. D. Underwriting Requirements .................................................................................................................................. 15 E. Resale Provisions of Owner Occupied Housing ...................................................................................................... 15 F. Term of Affordability Restrictions .......................................................................................................................... 16 IV. SUBSIDIES, INCENTIVES AND FINANCING MECHANISMS ........................................................................................................... 18 A. Density Bonus ........................................................................................................................................................ 19 V. COMPLIANCE REPORTING ................................................................................................................................................... 20 A. Rental Units’ Compliance Packet and Audit.............................................................. Error! Bookmark not defined. B. Home Ownership Units’ Compliance Packet ......................................................................................................... 20 ii VI. AFFIRMATIVE MARKETING PLAN ......................................................................................................................................... 22 VII. IMPLEMENTING AGREEMENTS AND CONDITIONS ....................................................................... ERROR! BOOKMARK NOT DEFINED. VIII. DEFINITIONS ................................................................................................................................................................. 23 iii EXHIBIT LIST EXHIBIT 1A SUPPLEMENTAL RENTAL APPLICATION ........................................................................................... 25 EXHIBIT 1B APPLICANT’S STATEMENT ............................................................................................................ 26 EXHIBIT 2A SEMI-ANNUAL REPORT ................................................................................................................ 27 EXHIBIT 2B SEMI-ANNUAL AFFORDABLE HOUSING MONITORING REPORT ........................................................... 28 EXHIBIT 2B SEMI-ANNUAL AFFORDABLE HOUSING MONITORING REPORT ........................................................... 29 EXHIBIT 3 HOMEBUYER’S QUALIFYING FORM .................................................................................................. 30 EXHIBIT 4 CITY REQUIREMENTS FOR AFFIRMATIVE MARKETING PLAN .................................................................. 31 iv FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 5 I. INTRODUCTION A. PURPOSE AND CONTENT The purpose and intent of this Affordable Housing Program (AHP) is to encourage the development of diverse and balanced neighborhoods with a range of housing opportunities for all identifiable economic segments of the population, including households of lower and moderate income consistent with the City’s housing policies and needs as specified in its General Plan Housing Element. The intent is to ensure that when developing the limited supply of developable land, housing opportunities for persons of all income levels are provided. The provision of this AHP establish standards and procedures that will encourage the development of housing affordable to low and moderate-income households within the Sectional Planning Area (SPA) and are to be consistent with the Housing Element’s Balanced Communities Policy and the adopted Guidelines. The AHP identifies the type and location of affordable housing units to be provided, potential subsidies or incentive programs, income restrictions and methods to verify compliance. The program may be implemented through various mechanisms including development agreements, tentative map conditions, and specific housing project agreements that may include additional terms and conditions, consistent with this program. B. NEEDS ASSESSMENT According to SANDAG’s 2050 Regional Growth Forecast, Chula Vista is expected to gain 42,828 new residents by 2020 and 57,305 more by 20501. That translates to an increase of 10,679 new households by 2020 and 18,408 more households by 2050. Chula Vista has second highest growth rate in the County of San Diego. The characteristics of the City’s population, housing, and employment that affect its housing goals, policies and programs include: • The population has more diversity in race/ethnicity than the region, in that 60% of residents identified themselves as Hispanic or Latino.2 Asian population comprises 14%, and white, non-Hispanic population represents 20% as of 2010. • The City’s average household size is increasing. In 2010, Chula Vista’s average household size was 3.21 compared to 2.75 average household size in San Diego County. • The City’s diverse employment base will grow by more than 78% between 2010 and 2050. In 2010, nearly 30% of the labor force were in the retail or service industry, where lower pay scales predominate. • In 2010, about 43% of the households fell into the low-income category. Of these households, 25% rare very low. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 6 • The estimated average age in Chula Vista is 34.3 years. According to the 2010 Census, a majority of the City’s population were between the ages of 21 to 64. By 2030, the forecasted average age is over 40, with an increase of age groups above 55. • The U.S. Census reported a total of 79,416 housing units in the City of Chula Vista in 2010. In Eastern Chula Vista, the housing market is predominated by single-family housing (83 %). The City has two sets of numerical housing goals established by SANDAG, which are also addressed in the City’s General Plan Housing Element: the City’s share of the region’s future housing needs (regional share goals) and the Quantified Objectives for Affordable Housing Production. The total regional share goal is 11,315 new housing units by 2020, with 50% or 5,648 units needed for very low- and low-income households. According to San Diego Association of Government’s (SANDAG) Preliminary 2050 Cities/Counties Forecast, Chula Vista is expected to gain 94,454 new residents and 28,755 new households. Furthermore, SANDAG, through its Regional Housing Needs Allocation, estimated that based on anticipated economic growth for the period beginning January 1, 2010 to December 31, 2020, the City would experience a demand for 12,861 new housing units, of which 5,648 new housing units affordable to low and very low-income households and 2,257 new housing units for moderate income households. To encourage the development of adequate housing to meet the needs of low and moderate-income households and to further geographic and community balance, the City’s adopted Housing Element provides for a Balanced Community Policy, requiring ten percent (10%) affordable housing for low and moderate-income households within developments of fifty (50) or more residential units. This inclusionary housing program will serve as only one component of the City’s overall housing strategy and will complement other affordable housing efforts, including preservation of existing assisted housing, development of new assisted housing with public subsidies, first-time homebuyer assistance, and rehabilitation loans for low income homeowners. The City does find that such inclusionary housing policy is beneficial to increasing the supply of housing affordable to households of lower and moderate incomes and to meet the City’s regional share of housing needs given the demographics of the community and its needs, past housing production performance, and the existing opportunities and constraints as detailed in its Housing Element. The current characteristics of the City’s population, housing, employment, land inventory, and economic conditions, that affect its housing goals, policies and programs include:  The population has more diversity in race/ethnicity than the region, in that 60% of residents identified themselves as Hispanic or Latino.1 Asian 1 Housing Element of the General Plan. April 23, 2013 FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 7 population comprises 14%, and white, non-Hispanic population represents 20% as of 2010. This compares to 32 percent, 11 percent, and 48 percent, respectively, for the region as a whole.  Chula Vista residents have household income characteristics that nearly match the regional median.  There is a disparity in household median income for those households living west of Interstate-805 ($47,969) and east of Interstate-805 ($86,032).  One in every 4 households earn less than $35,000 per year.  Household size is slightly larger than the region, at 3.21 persons per household compared to 2.75 per household for the region.  Seniors, aged 65 years or older, comprise 18% of the total households.  Housing west of Interstate-805 was built primarily before 1980 (32% before 1960 and 50 % between 1960-1980). Housing east of Interstate- 805 was built after 1980, with 41 % built between 1980-2000, and 50% built after 2000.  Housing types are diverse west ofl-805, with 41 % multifamily housing and 48% single family housing. Single family homes comprise the majority of housing available east ofl-805 (82% of housing).  A home ownership rate of 58.1 percent is slightly above as the region's rate of 54 percent.  The median housing cost (resale) in 2018 of $589,000 is higher than the region's median cost of $550,000.  The well-established neighborhoods and master planned neighborhoods create different opportunities and require a different set of policies and programs to address housing needs. The amount of land in the City available for new residential development is severely limited by geography and size. The largest supply of vacant developable land is planned for master planned communities. The City has two sets of numerical housing goals established by SANDAG, which are also addressed in the City’s General Plan Housing Element: the City’s share of the region’s future housing needs (regional share goals) and the Quantified Objectives for Affordable Housing Production. The total regional share goal is 11,315 new housing units by 2020, with 50% or 5,648 units needed for very low- and low-income households. Chula Vista faces a growing shortage of housing that is affordable to a wide range of our population and needed for a healthy functioning housing market. This lack of affordable housing is detrimental to the health, safety and welfare of the City's residents. Employees may be forced to live in less than adequate housing within the FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 8 City, pay a disproportionate share of their incomes to live in adequate housing within the City or commute increasing distances to their jobs from housing located outside the City. The City's Balanced Communities Policy can enhance the public welfare by increasing the supply of housing affordable to households of lower and moderate-income incomes in a balanced manner and thereby combating the adverse effects to the City due to an insufficient supply of affordable housing. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 9 II. FC-2 AFFORDABLE HOUSING OBLIGATION, LOCATION, PHASING, DESIGN AND UNIT MIX A. OBLIGATION The City of Chula Vista Housing Element and the Otay Ranch GDP provide that ten percent of the total units will be affordable to low and moderate-income households. Of the ten percent, five percent must be affordable to low income households and five percent must be affordable to moderate income households. In calculating the required number of affordable units, fractional units may result and may either be provided as one additional affordable unit or paid as a partial in-lieu fee equal to the resulting fraction. The estimated Freeway Commercial North (FC-2) affordable housing unit obligation is based on the FC-2 SPA entitlement authorization of 600 900 units within the Village. The affordable units required for FC-2 are 30 45 low income and 30 45 moderate-income affordable units. B. TYPES OF AFFORDABLE HOUSING The housing policies established in the City of Chula Vista Housing Element advocate a broad variety and diversity of housing types. The affordable housing obligations of FC-2 will be met through a combination of housing types including rental and “for-sale” housing. In general, low-income housing needs will be satisfied through the provision of rental units. Depending upon the availability of adequate subsidies, incentives or other financing assistance, a limited number of "for-sale" multi-family housing units affordable to low income households may be available as well. Housing opportunities to meet the needs of moderate income households will be provided through a combination of market-rate rental units as well as “for-sale” housing in medium-high to higher density developments. C. LOCATION The location of affordable housing developments shall take into consideration proximity to and availability of the following: • Existing or proposed public transit facilities or transportation routes; • Existing or proposed community facilities and services, such as shopping, medical, child care, recreation areas and schools; and • Existing or future employment opportunities. Affordable housing units required for FC-2 may be located either within or outside the plan area. Affordable housing to accommodate low-income households may be provided within rental housing developments. “For-sale” units affordable to moderate income households may be available as well. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 10 Consideration of location will be made on a case-by-case basis. Evaluation of alternate locations should include an analysis of the specific benefit to be gained from development of such replacement site, including such factors as an increase in the number of affordable units, deeper affordability levels, or the earlier satisfaction of the affordable housing requirement. Identification of potential target sites in this Affordable Housing Program describes one way in which the FC-2 affordable housing obligation might be met, and is not meant to require that affordable units be constructed on any specific sites nor to preclude other alternatives. Such alternatives might include, by way of example, the aggregation of rental housing affordable to low-income households within the mixed-use site, or as a separate component of another development site. A final determination as to the location and type of the affordable housing sites will occur with subsequent entitlements, approvals and agreements. D. PHASING Development of FC-2 will be completed in multiple phases to ensure construction of necessary infrastructure and amenities for each phase as the project progresses. The Phasing Plan is non-sequential. This recognizes that sequential phasing is frequently inaccurate due to unforeseen market changes or regulatory constraints. Therefore, the FC SPA Plan and Public Facilities Finance Plan (PFFP) permit non-sequential phasing by imposing specific facilities requirements for each phase to ensure that FC-2 is adequately served and City threshold standards are met. Detailed schedules and building permit stipulations for the construction of affordable units in relation to other market rate units will be established through the initial Affordable Housing Agreement. The Affordable Housing Agreement must be in place prior to the approval of the first Final Subdivision Map. The Developer shall diligently pursue completion of the construction of the low and moderate income housing units as per the implementation schedule established by the initial Affordable Housing Agreement. E. DESIGN Affordable housing shall be compatible with the design and use of the market rate units, in terms of appearance, materials, and finish quality. The developer shall have the option of reducing the interior amenities, levels and square footage of the affordable units. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 11 F. UNIT MIX BY BEDROOM COUNT The affordable units shall have an overall unit mix by bedroom count which reflects the appropriate community need and shall be comparable to the unit mix by bedroom count of the market rate units in the residential development. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 12 III. AFFORDABLE HOUSING RESTRICTIONS A. INCOME ELIGIBILITY To determine the eligibility of a household for the low and/or moderate income housing unit, the household purchasing or renting the affordable unit must qualify as a lower income/moderate income household, as established by and amended from time to time pursuant to Section 3 of the United States Housing Act of 1937, as published by the U.S. Department of Housing and Urban Development (HUD), and as also provided in California Health and Safety Code Sections 50079.5 and 50105. B. AFFORDABLE MONTHLY RENTS HOUSING COSTS For rental housing, compliance with the affordable housing requirements is determined by verifying that the total rent cost paid by the tenant is considered affordable as defined below. To determine affordable rent costs, monthly “Affordable Rent” includes all actual or projected monthly payments for the following 2:  Use and occupancy of a housing unit and the associated land and facilities;  Any separately charged fees and service charges assessed by the lessor which are required by all tenants but is not to include security deposits;  A reasonable allowance for utilities (including garbage collection, sewer, water, electricity, gas and other heating, cooking, and refrigeration fuels but not to include telephone service, cable TV, or high speed modem) as defined by the Federal Regulations for the Tenant Based Rental Assistance Program; and,  Possessory interest taxes or other fees and charges assessed for use of the associated land and facilities by a public or private entity other than the lessor. Affordable monthly rent is not to exceed following calculations:  Very Low Income: 50 percent (50%) of the Area Median Income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by 30 percent (30%) and divided by 12.  Low Income: 80 percent (80%) of the Area Median Income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by 30 percent (30%) and divided by 12. 2 25 California Code of Regulations Section 6918 FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 13  Moderate Income: 120 percent (120%) of the area median income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by not more than 35 percent (35%) and divided by 12. Should subsidized financing and other incentives from a public agency be proposed and obtained, the monthly affordable rent shall be dictated by such program or granting Agency. If no affordable rent is specified, affordable monthly rents shall be established in accordance with Section 50053 of the California Health and Safety Code. The allowable housing expense paid by a qualifying household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for the following classes of housing: Very Low Income rental and for-sale units:: 30 percent of the gross monthly income, adjusted for household size, at 50 percent of the Area Median Income (AMI) for San Diego County, or as provided in Section 50053 (b)(2) and 50052.5 (b)(2) of the California Health and Safety Code Lower Income, rental units: 30 percent of the gross monthly income, adjusted for household size, at 60 percent of the Area Median Income (AMI) for San Diego County, or as provided in Section 50053 (b)(3) of the California Health and Safety Code. Lower Income, for-sale units: 30 percent of the gross monthly income, adjusted for household size, at 70 percent of the Area Median Income (AMI) for San Diego County, or as provided in Section 50052.5 (b)(3) of the California Health and Safety Code. Moderate Income, rental units: 30 percent of the gross monthly income, adjusted for household size, at 110 percent of the Area Median Income (AMI) for San Diego County, or as provided in Section 50053 (b)(4) of the California Health and Safety Code. Moderate Income, for-sale units: 35 percent of the gross monthly income, adjusted for household size, at 110 percent of the Area Median Income (AMI) for San Diego County, or as provided in Section 50052.5 (b)(4) of the California Health and Safety Code. To determine the "Allowable housing expense" include all of the actual or projected monthly or annual recurring expenses required of a household to obtain shelter. 1. For a for-sale unit, allowable housing expenses include payments for principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, homeowner FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 14 association fees, and a reasonable allowance for utilities, or as defined in 25 California Code of Regulations Section 6920. 2. For a rental unit, allowable housing expenses include payments for rent and a reasonable allowance for utilities, or as defined in 25 California Code of Regulations Section 6918. Should subsidized financing and other incentives from a public agency be proposed and obtained, the monthly affordable rent shall be dictated by such program or granting Agency. If no affordable rent is specified, affordable monthly rents shall be established in accordance with Section 50053 of the California Health and Safety Code. C. AFFORDABLE HOUSING COSTS FOR OWNER OCCUPIED HOUSING For ownership housing (for sale units), compliance with the affordable housing requirements is determined by verifying that the sales price paid by the buyer equates to a total housing costs that is considered affordable as defined below. To determine affordable housing costs, monthly “Housing Payments” includes all actual or projected monthly payments for the following: • Principal and interest on a mortgage loan, including rehabilitation loans, at the time of initial purchase by the homebuyer; • Allowances for property and mortgage loan insurance fees; • Property taxes and assessments; • A reasonable allowance for utilities (including garbage collection, sewer, water, electricity, gas and other fuels but not to include telephone service, cable TV or high speed modem) as defined by the Federal Regulations for the Tenant Based Rental Assistance Program; • Homeowners association fees; and • Space rent, if the housing unit is on rented land. Affordable monthly housing payments are not to exceed the following calculations: • Very Low Income: 50 percent (50%) of the Area Median Income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by 30 percent (30%) and divided by 12. • Low Income: FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 15 80 percent (80%) of the Area Median Income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by 30 percent (30%) and divided by 12. • Moderate Income: 120 percent (120%) of the Area Median Income (AMI) for San Diego County, adjusted for household size appropriate for the unit, multiplied by not more than 35 percent (35%) and divided by 12. Should subsidized financing and other incentives from a public agency be proposed and obtained, the affordable monthly housing payment shall be dictated by such program or granting Agency. If no affordable monthly housing payment is specified, the affordable monthly housing payment shall be established in accordance with Section 50052.5 of the California Health and Safety Code. C. UNDERWRITING REQUIREMENTS To ensure the preservation of affordability of proposed low and moderate- income housing and financial viability of program participants, the City shall encourage the following policies consistent with the City’s adopted City Council Policy 453-02:  Fixed rate mortgages only. No adjustable rate mortgages;  Affordable monthly housing payments no more than 33 38 percent of household income (“Front End Ratio”). Total debt payments no more than 45 percent of household income (“Back End Ratio”).  No “teaser” rates; and,  No non-occupant co-borrowers. D. RESALE PROVISIONS AFFORDABILITY TERM OF OWNER OCCUPIED HOUSING In order to ensure the continued affordability of the units, resale of the owner occupied units must be restricted for the required term of thirty (30) years. After initial sale of the affordable units to a low-income household, all subsequent buyers of such units must also be income eligible and the unity must be sold at an affordable price. A developer may opt to have no income or sales price restriction for subsequent buyers, provided however that After initial sale of the affordable units to a low- income household, all subsequent buyers of such units must also be income eligible and the unity must be sold at an affordable price. A developer may opt to have no income or sales price restriction for subsequent buyers, provided FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 16 however that After initial sale of the affordable units to a low-income household, all subsequent buyers of such units must also be income eligible and the unity must be sold at an affordable price. A developer may opt to have no income or sales price restriction for subsequent buyers, provided however that After initial sale of the affordable units to a low-income household, all subsequent buyers of such units must also be income eligible and the unity must be sold at an affordable price. A developer may opt to have no income or sales price restriction for subsequent buyers, provided however that After initial sale of the affordable units to a low-income household, all subsequent buyers of such units must also be income eligible and the unity must be sold at an affordable price. A developer may opt to have no income or sales price restriction for subsequent buyers, provided however that Consistent with City Council Policy 453-02, restrictions to the satisfaction of the City will be recorded on the property which will are in place that would result in the recapture by the City or its designee of a financial interest in the units equal to the amount of subsidy necessary to make the unit affordable to a low-income household and a proportionate share of any equity. Funds recaptured by the City shall be used to provide assistance to other identified affordable housing production or contributions to a special needs housing project or program. To the extent possible, projects using for-sale units to satisfy the obligations of developers under the City’s Affordable Housing Program shall be designed to be compatible with conventional mortgage financing programs including secondary market requirements. E. TERM OF AFFORDABILITY RESTRICTIONS The term of the affordability restrictions shall be thirty years (30) years from issuance of the Certificate of Occupancy for the first structure providing income and rent restricted units, or the longest period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or other rental financing subsidy or incentive/concession/waiver program from a public agency. Should subsidized financing or other incentives from a public agency be proposed and obtained, the length of time income and rent restrictions are to be maintained for an affordable rental project shall be determined by such program or granting agency. If more than one funding source is utilized the term of the affordability restrictions shall be the longest required by any of the funding sources. If no term of the affordability restrictions is specified, it shall be fifty- FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 17 five (55) years from issuance of the Certificate of Occupancy for the first structure providing income and rent restricted units. In the event that no subsidized financing or other incentives from a public agency is obtained, affordability restrictions shall remain in effect for twenty (20) years from the date of issuance of the Certificate of Occupancy for the first structure in the project. The term of affordability and resale restrictions for affordable for-sale units are more appropriately described above in “Resale Provisions of Owner Occupied Housing.” The he most restrictive term of the affordability shall apply. The term of affordability and resale restrictions for affordable for-sale units are more appropriately described above in “Resale Provisions of Owner Occupied Housing.” FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 18 IV. SUBSIDIES, INCENTIVES AND FINANCING MECHANISMS Appendix “A” attached to this Affordable Housing Plan identifies some of the potential subsidies, incentives, and financing mechanisms that may be used to satisfy the FC-2 affordable housing obligation. The list contained in Appendix “A” is not intended to limit the use of other subsidies, incentives and financing mechanisms which are available now or may become available in the future. The obligation to provide affordable housing shall not be dependent upon the availability of such subsidies, incentives or financing mechanisms. The City agrees to use its reasonable best efforts to assist the Developer in pursuing the benefit of certain financing mechanisms, subsidies and other incentives to facilitate provision of affordable housing for Montecito, including those which require approvals from, or allocations by other agencies, to the extent that such resources and programs for this purpose are available. These mechanisms include, but are not limited to, local, state and federal subsidies and City density bonuses, planning, and design and development techniques and standards, and City fee waivers or deferrals which reduce the cost of providing affordable housing (collectively, the “Cost Reducing Mechanisms”). The parties acknowledge that the City is not hereby committing and cannot guarantee the availability of any Cost Reducing Mechanisms to the Developer for FC-2. The City reserves the right to approve, approve with conditions or disapprove, in its sole discretion, any Developer request for subsidized financing sponsored by the City. The obligation to provide affordable housing shall not be dependent upon the availability of subsidies, incentives or financing mechanisms. The City shall consider providing incentives, assistance, and subsidies to those qualifying projects and supporting any applications for assistance that requires approvals from, or allocations by other agencies, to the extent feasible, in a manner that offsets the cost of providing for affordable units. Offsets will be offered by the City to the extent that resources and programs for this purpose are available to the City and to the extent that the qualifying projects, with the use of the offsets, assists in achieving the City's housing goals. To the degree such offsets are available, the Developer may make application to the City. The parties acknowledge that the City is not hereby committing, directly or through implication, a right to receive any offsets from City or any other party or agency to enable the Developer to meet the obligations and cannot guarantee the availability of any Cost Reducing Mechanisms to the Developer for Freeway Commercial North. The City reserves the right to approve, approve with conditions or disapprove, in its sole discretion, any Developer request for subsidized financing sponsored by the City. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 19 A. DENSITY BONUS Projects that meet the applicable requirements of State law (Government Code Section 65915) as a result of affordable housing units, are entitled to a density bonus or other incentives in accordance with the provisions of such law. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 20 V. COMPLIANCE REPORTING The Compliance reports described below shall be submitted to the City of Chula Vista Community Development Department. The requirements imposed by providers of subsidized financing or other Cost Reducing mechanisms may replace the terms described below at the sole discretion of the City. A. RENTAL UNITS’ COMPLIANCE PACKET AND AUDIT Should a Developer seek approval by the City to credit a tenant toward its low and/or moderate income housing obligation, the Developer must give the City, at a minimum, a report verifying compliance with the terms of this document and/or the subsidizing financing program consisting of the following: • Supplemental Rental Application - Exhibit 1 • Semi-Annual Report – Exhibit 2A and 2B • Authorization to Release Information • Acknowledgement that the information is for the City’s Reporting and Administration use only. The Developer shall not be required to perform any extraordinary investigation or verification regarding such information other than the Developer’s usual and customary means of income verification. The methods of income verification may vary based upon the nature of the income reported by the tenant, and may include employment verification, copies of recent paycheck stubs, evidence of social security or other government payments, or copies of tax returns. The Developer shall retain the Supplemental Rental Application and any supporting documents for a period of at least three (3) years after the applicant ceases to occupy a low and/or moderate income housing unit. A household occupying a designated low and/or moderate income unit whose annual income increases subsequent to occupying said unit (referred to as “over income household”) and thus exceeds the 80% of area median income for low income households or 120% of area median income for moderate income households, need not vacate the apartment. However, at the Developer’s discretion, this over income household’s monthly rent (including utilities) may be increased to the market rate. Regardless of a rent increase, the Developer can no longer credit this over income household towards its 5% low income requirement and is obligated to replace this unit by renting the next comparable unit to a low income household as per the paragraph below. Thus, the Developer shall provide income information biannually and acknowledge that should its income increase, the household may be subject to a higher rent. Adjusted monthly incomes can be calculated using rules according to the HUD Handbook 4350/3 Occupancy Requirements for HUD Subsidized Multifamily Housing. The location of the designated units may change over time (to be referred to as “floating units”) as long as the total number of affordable units remains FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 21 constant and that substituted units are comparable in terms of size, features, and the number of bedrooms, as determined by the Director of the Community Development Department. If the over income household does not vacate the unit, the Developer must assure that when the next comparable apartment becomes vacant, the newly available unit must be rented to a low income household, as a floating unit, to replace the previously designated unit no longer housing a low and/or moderate income household. If the over income household chooses to leave, the vacated unit retains its low income unit designation. If a residential apartment complex is designated as 100% low and/or moderate income, the over income household will not be required to vacate, if it pays the increased rent, and the unit will not be replaced with a “floating unit.” When the over income household vacates the unit, the unit retains its low income unit designation. If the City determines that an outside audit is necessary to verify the accuracy of the submitted rent roll, then on a basis no more frequently than once a year, it may require such an audit at the expense of the Developer. In such an event, within ten (10) days after delivery of the City’s written request for such outside audit, the Developer shall deliver to the City the name of three (3) certified public accountants doing business in the Metropolitan San Diego area. The City will promptly deliver to the Developer notice of approval by the City of one or more of said names. The audit shall be completed by an approved certified public accountant, at the Developer’s sole cost and expense, within sixty (60) days after the delivery to the Developer of the City’s approval. The certified public accountant shall promptly deliver a copy of the written audit to the City. Such audit shall be an audit of the Developer’s records, including the information supplied to the Developer by the low income tenants. The auditor shall not be required to verify the accuracy of the information provided by the low-income tenants. B. HOME OWNERSHIP UNITS’ COMPLIANCE PACKET Should the Developer seek approval by the City to credit a home purchase toward its low and/or moderate income housing obligation, the Developer must give the City, at a minimum, a compliance packet including the following: • Copy of Settlement Sheet • Final 1003 • Final Uniform Underwriting Transmittal Summary • Good Faith Estimate • Authorization to Release Information by Purchaser • Annual Certification of Homebuyer to include a copy of tax information and copy of phone or other utility bill FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 22 • Acknowledgement that the information is for the City’s Reporting and Administration use only Verification of low and/or moderate-income buyer is to be completed by the Developer on behalf of the City. The Developer shall not be required to perform any extraordinary investigation or verification regarding such information other than the Developer’s usual and customary means of income identification. The methods used to verify income will vary depending upon the nature of sources of income reported by the buyer, but may include employment verification, review of recent paycheck stubs, government or social security payments, or a review of recent tax returns. The Developer may contact the City’s Community Development Housing Division’s Housing Coordinator to confirm the City’s acceptance of the applicant as credit toward the Developer’s low and/or moderate income housing unit obligation. The Developer may contact the City prior to the sale of the unit for consultation purposes if desired; however, approval will be given in writing only after the required documents are reviewed and accepted by the City. Terms related to occupancy and affordability restrictions shall be recorded as a separate deed restriction or regulatory agreement on the property designated for the affordable units and shall bind all future owners and successors in interest for the term of years specified therein. The City shall monitor affordable units for compliance with those terms and conditions of all relevant Affordable Housing Agreements or other restrictions. The Developer shall submit compliance reports in the frequency and manner prescribed by the City of Chula Vista Development Services Department. VI. AFFIRMATIVE MARKETING PLAN The Developer shall provide a marketing plan acceptable to the City, in the City's reasonable discretion, for proactively marketing the low and moderate income housing units to low and moderate income tenants and purchasers. Developer shall use good faith and reasonable best efforts to market the low and moderate income housing units to low and moderate income tenants and purchasers according to the affirmative marketing plan. (See Exhibit 4, “City Requirements for Affirmative Action Plan.”) The City will use good faith and reasonable best efforts to assist the Developer in marketing low and moderate income housing units to low and moderate income tenants and purchasers obtaining the services of a third-party organization in connection with such marketing efforts, processing the applications of prospective tenants and purchasers of low and moderate income housing units, and complying with the reporting requirements as required herein. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 23 VII. IMPLEMENTING AGREEMENTS AND CONDITIONS This AHP may be implemented through various mechanisms including development agreements, tentative map conditions, and specific housing project agreements that may impose additional terms and conditions consistent herewith. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 24 VIII. DEFINITIONS Affirmative Marketing Plan: An outline that details actions the Developer will take to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, sex, sexual orientation, marital status, familiar status, color, religion, national origin, ancestry, handicap, age, or any other category which may be defined by the law now or in the future. Low Income Household: A household of persons who claim primary residency at the same unit with combined incomes that are greater than 50%, but not more than 80% of the Area Median Income for the San Diego area based on household size as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at the same unit as their primary residency. Moderate Income Household: A household of persons who claim primary residency at the same unit with combined incomes between 80% to 120% of the Area Median Income for the San Diego area based on household size as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at the same unit as their primary residency. San Diego Area Median Income: The San Diego County area median income level as determined from time to time by HUD, based on household size. Subsidized Financing: Any financing provided by any public agency specifically for the development and construction of low or moderate income housing units, including but not limited to the following:  Low Income Housing Tax Credits (LIHTC) – statewide competition;  Housing Bonds – State;  Housing Bonds – City of Chula Vista;  Redevelopment Low and Moderate-income Housing Fund – Redevelopment Agency;  HOME – City of Chula Vista and County of San Diego;  Community Development Block Grants – City of Chula Vista; and,  Other Public Financing – State and Federal. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 25 EXHIBIT 1A Supplemental Rental Application The rental unit for which you are applying has received governmental assistance under programs to encourage more affordable housing. As a result, the unit carries a rent level restriction and is restricted to occupancy by low and moderate income households. The information required on this form is necessary to determine your income eligibility to occupy the unit. You must report all household income. Information provided will be confidential and not subject to public disclosure pursuant to State Government Code Section 6254(n). Rental Unit Address__________________________________________ Applicant Name______________________________________________ Other Household Members______________________________________ Total Current Annual Household Income from all Sources Including Asset: TOTAL $__________ Detail: Household Member____________Income____________Source________ Total Gross Annual Household Income shown on most recent Federal Tax Return from Previous Calendar Year (Attach copies of most recent Federal Tax returns from previous calendar year for all household members receiving income. Include other verification of income not appearing on tax forms). $________________ Monthly Rental Rate $____________ Number of Bedrooms_____________ EXHIBIT 1A CITY/HA SUPPLEMENTAL RENTAL APPLICATION Exhibit _-1 Insert Name Apartments Supplemental Application Insert Name Apartments offers apartments located at Insert Address . The units consist of 1, 2 and 3 bedroom units. For more information about Insert Name Apartments, the units, floorplans, etc, please stop by the Rental Office at ___________________________________, Chula Vista, CA 9191 . The purpose of this program is to provide affordable rental opportunities for low-income households and to ensure that City of Chula Vista meet the goals set fort h in the City’s Housing Element and HUD approved Consolidated Plan. The City of Chula Vista and Insert Ownership Name welcomes your interest in Insert Name Apartments and requests that you read this information in its entirety. It is very important that you understand ALL of the program requirements. Once you agree to rent an affordable unit you are bound by all of the requirements. AFFORDABLE HOUSING UNITS In order to qualify to rent an Affordable Housing Unit, applicants must meet ALL of the requirements outlined within this document. Income restrictions apply. Please refer to the chart below for the MAXIMUM gross income based upon household size, which is defined as the total number of people residing within the household. You must be able to provide evidence that the people you list as household occupants will reside in the affordable unit. Gross income is the total amount of income earned by all persons, over the age of 18, within the household before all standard withdrawals (including federal tax, state tax, social security, etc.) Affordable Unit Restrictions The restrictions set forth in the Table below shall establish the maximum rental rate, which shall be adjusted for family size appropriate for the Affordable Unit, from which a utility allowance as approved by the City Manager shall be deducted. The family size appropriate for the Affordable Unit for purposes of establishing the maximum rental rate shall be calculated at one person per bedroom plus one. EXHIBIT 1A CITY/HA SUPPLEMENTAL RENTAL APPLICATION Exhibit _-2 TABLE OF RENT AND INCOME RESTRICTION CRITERIA UNIT TYPE MAXIMUM MONTHLY RENTS MAXIMUM INCOME OF ELIGIBLE TENANTS 1-Bedroom 1/12th of 30% of 50% of AMI 50% of AMI 1-Bedroom 1/12th of 30% of 60% of AMI 60% of AMI 2-Bedroom 1/12th of 30% of 50% of AMI 50% of AMI 2-Bedroom 1/12th of 30% of 60% of AMI 60% of AMI 3-Bedroom 1/12th of 30% of 50% of AMI 50% of AMI 3-Bedroom 1/12th of 30% of 60% of AMI 60% of AMI “Eligible Tenants” are those tenants: (i) whose aggregate gross annual income does not exceed the respective percentages set forth in the Table of Rent and Income Restriction Criteria set forth in Section 1(a), above, as adjusted for family size; and (ii) who own no interests in real property other than a timeshare which may be used for a maximum of one month per year. For purposes of this Declaration, the current annual area median income shall be the area median income defined by HUD as the then current area median income for the San Diego -Carlsbad-San Marcos Metropolitan Statistical Area, established periodically by HUD and published in the Federal Register, as adjusted for family size. The rents and the occupancy restrictions shall be deemed adjusted, from time to time, in accordance with any adjustments that are authorized by HUD or any successor agency. In the event HUD ceases to publish an established area median income as aforesaid, Lender may, in its sole discretion, use any other reasonably comparable method of computing adjustments in area median income. Notwithstanding anything contained herein to the contrary, to the extent any other restrictions applicable to the Property limit the rent and/or occupancy of the Property, the most restrictive shall apply. EXHIBIT 1A CITY/HA SUPPLEMENTAL RENTAL APPLICATION Exhibit _-3 ADDITIONAL AFFORDABLE HOUSING PROGRAM REQUIREMENTS RENT SELECTION CRITERIA [Insert if Applicable] The Property Management Company will use the following criteria in order to determine priority for rental of an Affordable Unit. A point system has been established so that applicants with a higher number of points will receive preference for units. [Insert Point System if Applicable] EXHIBIT 1A CITY/HA SUPPLEMENTAL RENTAL APPLICATION Exhibit _-4 AFFORDABLE HOUSING RESTRICTIONS APPLICATION REVIEW PROCESS  Applicants will be contacted by the rental office staff via U.S. mail acknowledging receipt of complete application and supporting documentation. The property manager and the City will review all applications to determine eligibility.  Eligible applications will be forwarded to _____________ to be reviewed for eligibility. Please be advised that your financial information will be reviewed for two different purposes:  To determine that your household annual income does NOT exceed the maximum allowed by the City of Chula Vista for the Affordable Housing. ALL income will be considered for all persons living in the home who are 18 years or older, even if the income is not taxable income.  To determine if your income, employment history and credit rating are sufficient to qualify for a rental. Before you submit your complete application and supporting documentation please ask yourself the following questions. Do you:  Meet ALL the program requirements?  Have a good credit rating?  Have stable income? If you have answered yes to ALL the above questions……… Fill out the attached application and submit it plus ALL required documentation and MAIL to: ATTN: Insert Ownership Name, LP Insert Name Apartments _____________________ _____________________ EXHIBIT 1A SAMPLE SUPPLEMENTAL RENTAL APPLICATION Exhibit __-5 AFFORDABLE HOUSING UNIT APPLICATION (1) APPLICANT #1 Name Social Security Number Age Address City State Zip Code Employer Name and Address Position/Title Home Phone Work Phone Marital Status:  Single  Divorced  Married Gender: _______________ 2) APPLICANT #2 Name Social Security Number Age Address City State Zip Code Employer Name and Address Position/Title Home Phone Work Phone Marital Status:  Single  Divorced  Married Gender: _______________ EXHIBIT 1A SAMPLE SUPPLEMENTAL RENTAL APPLICATION Exhibit __-6 HOUSEHOLD INFORMATION: List ALL household members Including Applicant(s) that will reside in the Affordable Housing Unit. Attach proof of this information. Total # of persons in Household ______ Total yearly Household Income $ _____________ Total Household Assets $________________ ______ Name Age Relationship to Applicant ______ Name Age Relationship to Applicant ______ Name Age Relationship to Applicant ______ Name Age Relationship to Applicant ______ Name Age Relationship to Applicant ______ Name Age Relationship to Applicant EXHIBIT 1A SAMPLE SUPPLEMENTAL RENTAL APPLICATION Exhibit __-7 RENTER SELECTION CRITERIA INFORMATION: Selection of Tenants: Absent a Master List described above, selection of tenants shall be made randomly by lottery within the following levels of priority, subject in all circumstances to applicable limitations imposed by law, including, without limitation, the Fair Housing Act under Federal law: If you respond YES to any of the questions below, you MUST provide written evidence with your application satisfactory to the City of Chula Vista or you may not receive all eligible points. 1) Did you have to leave your most recent PRIMARY residence due to either: Being displaced from your primary residence as a result of an action of City or Agency, a condominium conversion involving the household’s residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which the household’s residence was located, and the household resided in such housing as the household’s primary place of residence for at least two years prior to such action or event.  Yes  No How long has this home been your primary residence?  2+ years  1 year  Less than 1 year 2) Does your Household meet one of the following criteria: (i) households which are displaced from their primary residence as a result of an action of City or Agency, a condominium conversion involving the household’s residence, expiration of affordable housing covenants applicable to such residence, o r closure of a mobile home or trailer park community in which the household’s residence was located, and the household resided in such housing as the household’s primary place of residence for at least one year but less than two years prior to such action or event; (ii) households with at least one member who resides within the City, as that person’s primary place of residence; (iii) households with at least one member who works or has been hired to work within the City, as that person’s principal place of full-time employment; or (iv) households with at least one member who is expected to live within the City as a result of a bona fide offer of employment within the City.  Yes  No EXHIBIT 1A SAMPLE SUPPLEMENTAL RENTAL APPLICATION Exhibit __-8 No discrimination herein may be used for the purpose or effect of delaying or otherwise denying admission to the Property or unit based on the race, color, ethnic origin, gender, religion, disability, or age of any member of the applicant. AFFORDABLE HOUSING APPLICATION CHECKLIST This checklist contains a list of documents that you are REQUIRED to submit, along with the completed Application as part of the application review process. Please review the list carefully and include COPIES of all documents that you are submitting. If there are any documents listed that you do not believe you are required to submit please indicate N/A and state the reason why the information is not attached. You must attach this signed checklist as part of your application packet. APPLICATIONS THAT ARE MISSING DOCUMENTATION WILL NOT BE CONSIDERED.  Two months of most current and consecutive bank/investment/retirement statements for ALL accounts (all pages)  Most recent paycheck stubs covering a 30-day period for each borrower  Most recent one (1) year W-2s and/or 1099s for each borrower  Most recent one (1) year Federal Tax Returns for each borrower (all schedules)  Complete divorce decree(s) with all attachments, if applicable  Complete bankruptcy papers with all schedules and discharge papers for bankruptcies within the last 7 years, if applicable  Copy of Resident Alien Card, front and back, if applicable or other appropriate proof of legal U.S. residency If you are self-employed, also provide the following:  Most recent three (3) years tax returns and copies of 1040s, W-2s, 1099s and/or K-1s for each borrower  Limited or General Partnership returns (if ownership interest is 25% or greater)-copies of form 1065  Sub Chapter S Corporation returns (if ownership interest is 25% or greater)-copies of form 1120 S  U.S. Corporation returns (if ownership interest is 25% or greater)- copies of form 1120  YTD Profit and Loss Statement (in some cases this may need to be audited) EXHIBIT 1A SAMPLE SUPPLEMENTAL RENTAL APPLICATION Exhibit __-9 AFFORDABLE HOUSING UNIT AFFIDAVIT By signing below each applicant makes the following certifications: I understand and agree with the answers I have provided, and do furthermore certify the following: 1. That those people who I expect to share occupancy of the Residence with me are listed under the Household Information section of the Application. 2. That my spouse is an Applicant for the Program and must sign this Application. 3. That I will submit true and complete copies of all requested documentation. 4. That the Residence will be occupied and used as my principal place of residence. 5. That my income does not exceed the program income limits. AFFORDABLE HOUSING UNIT CERTIFICATION I acknowledge and understand that this Affidavit, as completed above, will be relied on for determining my eligibility for An Affordable Housing Unit. I acknowledge that a material misstatement negligently made by me in this Affidavit or in any other connection with my Application for an Affordable Housing Unit will constitute a violation punishable by a fine and possible criminal penalties imposed by law, and will result in the cancellation or revocati on of the Loan. I acknowledge that any false statement or misrepresentation or the fraudulent use of any instrument, facility, article, or other valuable thing or service pursuant to my participation in the Program is punishable by fine. RENTER DATE RENTER DATE FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 26 EXHIBIT 1B Applicant’s Statement I certify under penalty of perjury that the following information is true and correct to the best of my knowledge. I understand that any misrepresentation of the information contained herein may be cause for eviction. Signature______________________________________ Date_________________________________________ Owner’s Statement Based on the foregoing information, I certify under penalty of perjury that the applicant is eligible to occupy this restricted low and moderate income housing unit. Eligibility is based on finding that the applicant’s household’s current annual income is $_________ and does not exceed current maximum household income of $__________ allowed under the terms of a Development Agreement with the City of Chula Vista regarding this residential rental development. Name:________________________________________ Title:_________________________________________ Signature:_____________________________________ Date:_________________________________________ FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 27 EXHIBIT 2A Semi-annual Report Owner’s Certification I am the owner or owner’s representative for an affordable housing development in the City of Chula Vista which is bound by a Housing Agreement with the City. I certify under penalty of perjury that the attached rent roll for affordable units at my project is true and correct to the best of my knowledge and complies with the terms and conditions stipulated in the Affordable Housing Agreement, or any agreements that implements the same, with the City of Chula Vista. Name:____________________________ Title:_____________________________ Signature: ___________________________Date:___________________ FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 28 EXHIBIT 2B Semi-Annual Affordable Housing Monitoring Report FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 29 Page 1 of 2 EXHIBIT 2B Semi-Annual Affordable Housing Monitoring Report FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 30 Page 2 of 2 EXHIBIT 3 Homebuyer’s Qualifying Form Buyer’s Name: Current Address: Household Size: Household Income: Master Plan Community: Tract: Lot # Lot Address: # Bedrooms: Purchase Price 3: Monthly PITI Payment: % of Income: Year of Purchase: Signature Authorizing Release to City: Sales Representative: Submitted to City on: Note: This information is for the City’s Reporting and Administrative Use Only. 3 The sales price of any unit being sold in partial satisfaction of Developer’s obligation to provide moderate income housing shall not exceed the affordable housing costs for owner occupied housing as defined within the Affordable Housing Program for the master plan community. FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 31 EXHIBIT 4 City Requirements for Affirmative Marketing Plan Every Developer complying with the City of Chula Vista’s Housing Element’s “Affordable Housing Plan” shall submit to the City and Affirmative Marketing Plan for City Review and Approval which details actions the Developer will take to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, sex, sexual orientation, marital status, familiar status, color, religion, national origin, ancestry, handicap, age, or any other category which may be defined by the law now or in the future. I. The City of Chula Vista Affirmative Marketing Requirements are as follows. Please note, however, the Plan is not limited to the Requirements. (i) Detail methods for informing the public, buyers and potential tenants about Federal fair housing laws and the City of Chula Vista’s affirmative marketing policy; (ii) Publicize to minority persons the availability of housing opportunities through the type of media customarily utilized by the applicant, including minority outlets which are available in the housing market area; (iii) Identify by language and by number any significant number of persons in a community within the housing market area who have limited fluency in the English language; (iv) Where there is a significant number of persons in a community within the housing market area who have limited fluency in the English language, the Plan shall: (a) Identify the media most likely to reach such persons. (b) Advertise for the housing development in the native language of such persons, in addition to the English language, and (c) Describe the provisions which the housing sponsor will make for handling inquiries by and negotiations with such persons for the rental or sale of units in the development. (d) Detail procedures to be used by the Developer and/or property manager to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach (e.g., use of community organizations, places of worship, employment centers, fair housing groups, or housing counseling agencies). II. Records must be kept describing actions taken by the Developer and/or property managers to affirmatively market units and records to assess the results of these actions: FREEWAY COMMERCIAL NORTH SECTIONAL PLANNING AREA PLAN AFFORDABLE HOUSING PROGRAM 32 (i) The records shall include a copy or transcript of the advertisement copy, the identity of the media in which it was disseminated, and the date(s) of each appearance. The housing sponsor shall also keep a record of the dates and places of any meetings or communications between the housing sponsor and any individual or group referred to the housing sponsor by the agency or organizations representing any of the groups within the community acting on behalf of any classification of minority persons described above. Such records shall be retained for a period of five years; (ii) A description of how the Developer and/or property managers will annually assess the success of affirmative marketing actions and what corrective actions will be taken where affirmative marketing requirements are not met; and (iii) The Developer/property manager shall furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City of Chula Vista, HUD or its agent, or other authorized Federal and State officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. III. The City of Chula Vista may from time to time review the Plan and the Developer’s and property manager’s activities pursuant to the Plan and may require amendments to the Plan if it does not fully comply with the requirements of this section. IV. An affirmative marketing program shall be in effect for the duration of the Qualified Term defined in the Affordable Housing Agreement V. If a source of funding uses in a low/moderate income housing development, such as federal or state funds, has affirmative marketing requirements more restrictive than the City of Chula Vista’s affirmative marketing requirements, then the more restrictive applies.